The 32-year-old moved to Molineux on an initial 28-day loan earlier this month and has performed well during his three appearances - including being named as man of the match on his debut.
Wolves boss Kenny Jackett spoke in the immediate aftermath of that brilliant debut performance against Birmingham City that he would look to extend the centre-back’s loan deal further, and Williamson will now remain in the West Midlands until at least the middle of January.
Since signing for Newcastle from Portsmouth in 2010, Williamson has made 150 league appearances for the club and helped them to promotion back to the Premier League at the first attempt.
However, he has failed to make a league appearance so far this season under Steve McClaren , and the United boss revealed he allowed Williamson to move on loan in order to gain greater gametime.
Wolves boss Jackett said of the extension: “We are delighted that the deal has been extended and that Mike will be with us through a very busy December and Christmas period.
“It is quite even through November but then there are six games in December including that busy Christmas and we don’t a situation where we get caught out.
“Mike will give us some real competition and allow us to take our time with the players coming back.
“He has brought a lot of experience and physical presence to the back four and to the club and has helped the players around him at a time when we have had a number of injuries to centre backs.”